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Assembly Approves Lower Electric Rate

Posted

By SHANNON HAUGLAND
Sentinel Staff Writer

The Assembly made a number of decisions Tuesday night related to giving financial help to citizens and businesses affected by COVID mandates.

An ordinance was passed extending the lower wintertime electric rate of 12 cents per kwh for another two months.

“Due to the COVID-19 pandemic and the related governmental mandates, many residents are experiencing a decrease in income due to layoff, reduced work hours, or reduced work opportunities,” the ordinance says. “Additionally, many residents are experiencing unexpected increases in electrical usage due to hunkering down and sheltering in place, including children staying home due to school closures.”

Under the emergency ordinance the 12-cent rate will expire the last billing cycle in June, instead of the last billing cycle in April. Starting in July it will go to 19 cents. 

“I know how much people are hurting,” Valorie Nelson said. “I think this is a good way to help them.”

Richard Wein pointed to the estimated $1 million in revenue that will be lost, and cast the lone vote against.

Thor Christianson, who co-sponsored the item with Kevin Knox, said if revenues come up short the Assembly can consider extending the higher summertime seasonal rate into fall.

In other action, the Assembly without debate also extended the real property assessment appeal deadline from April 15 to June 15.

But a proposal to extend the sales tax filing and remittance deadline for the first quarter from April 30 to June 30 failed on a 2-5 vote with only co-sponsors Nelson and Christianson in favor.

The Assembly received two public comments, including one that said the ordinance would not provide real assistance to residents and businesses.

“It will create additional work for city employees, disrupt city cash flow and inadvertently encourage poor business practice costing everyone, but with no comparable return,” said John Feryok in his written testimony. “It will create additional work for city employees, disrupt city cash flow and inadvertently encourage poor business practice costing everyone, but with no comparable return.”

Max Rule, from Hames Corp., spoke in favor of the ordinance, as a way to help citizens, but said his company planned to file and pay on time as usual.

On another item, the Assembly approved a resolution to extend the city’s “hunker down” resolution, which was passed March 24 and expired April 14. It will now expire on May 12, unless earlier terminated by resolution of the Assembly. 

The resolution encourages residents to shelter in place, and work from home, among other recommendations.

The Assembly quickly approved:

– hiring Scott Elder as the new director of the city electric department.

– liquor license renewals for Little Tokyo and Asian Palace.

– reappointed Shannon Freitas to the Local Emergency Planning Committee, and Mike Johnson to the Gary Paxton Industrial Park.

The Assembly declined to reappoint Anne Pollnow to the Sitka Historic Preservation Commission, after hearing objections from two members of the public.

The Assembly also agreed to continue with planning on the No Name Mountain /Granite Creek Master Plan.